Jain Resource Stock Suffers 28% Two-Day Decline Amid Q4 Margin Pressure

Jain Resource Recycling Shares Crash 16% Amid Margin Pressure

Shares of Jain Resource Recycling plummeted nearly 16 percent in Tuesday's trade, extending their two-day decline to around 28 percent, as investors reacted sharply to margin pressure in the March quarter despite strong revenue growth.

The stock fell 15.78 percent or Rs 73.15 to Rs 390.30 on the NSE at 10:59 am.

Financial Performance

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Jain Resource Recycling reported consolidated revenue from operations of Rs 3,100 crore in Q4FY26, up 76 percent from Rs 1,760 crore in the corresponding quarter last year. Net profit rose 15 percent year-on-year to Rs 60.4 crore from Rs 52.4 crore, while profit before tax increased to Rs 89.9 crore against Rs 76.2 crore in Q4FY25.

Sequentially, however, profitability weakened sharply. Revenue increased 13 percent from Rs 2,752 crore in Q3FY26, but net profit declined 52 percent from Rs 125.6 crore amid rising operating costs and finance expenses. Finance costs rose to Rs 26.2 crore from Rs 25.7 crore in the preceding quarter, while employee benefit and other operating expenses also moved higher. Profit before tax fell from Rs 174.4 crore in Q3FY26.

Full Year Performance

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For the full financial year FY26, consolidated revenue from operations climbed 48 percent to Rs 9,543 crore from Rs 6,429 crore in FY25. Annual net profit surged 58 percent to Rs 347.4 crore compared with Rs 220.9 crore in the previous financial year.

Future Plans

The company also announced plans to establish a new plastic recycling facility with a capital expenditure of Rs 15 crore, which is expected to become operational by Q3FY27.

Brokerage Analysis

Motilal Oswal Financial Services (MOFSL) stated that margin pressure during the quarter was driven by copper price volatility, constrained scrap availability, and disruptions linked to the West Asia crisis, which impacted profitability despite strong revenue growth.

MOFSL lowered its FY27 and FY28 earnings estimates while maintaining a 'Buy' rating on the stock. "Factoring in lower-than-estimated earnings in Q4, we reduce our FY27/FY28 earnings estimate by 15 percent/16 percent and reiterate our BUY rating on the stock with a TP of Rs 560 (premised on 27x FY28E EPS)," it said.